Child Care Assistance – Help for your Child

If you are a single parent struggling to make ends meet, you are not alone.

• The median income of single parents is only a quarter of what two parent households make, according to the National Survey of Families and Households.
• In 2002, 45 percent of single mothers had more than one job, reports the Department of Labor.
• Less than 17 percent of single mothers receive any type of government assistance, such as food stamps, according to the 2002 Economic Roundtable.
• In 2007, there were 12.8 million children living in households with income below poverty level and single parents are twice as likely to be low-income than dual parent households, the National Center for Children in Poverty reports.

With the odds stacked against single parents, it can seem like a hopeless situation. Fortunately, there are ways you can receive some assistance, especially with child care costs.

Federal Child Care Tax Credit

The government wants to help low-income individuals with child care costs. For this reason, they have introduced a Federal child care tax credit.

To be eligible for the tax credit, you must:

• Use the child care resources while you work or look for work.
• The child is under the age of 13.
• The child spends at least 8 hours a day in your home.
• Your child has been with you for more than half the year.
• Child is physically or mental incapable of self-care.

The amount of money you will receive as part of the tax credit is a percentage of the amount of money you had to pay the child care provider. The maximum child care expenses accepted is $3,000. The percentage of the reimbursement you will receive for child care costs is based on your adjusted gross income

To apply for the Federal child care tax credit, you need to request information from the child care provider:

• Name
• Address
• Taxpayer Identification Number, Social Security Number or Employer Identification Number

You must complete Form 2441 with Form 1040 or 1040A. You must complete Part III of Form 2441, if your employer helped you pay any childcare expenses.

Child Care Grants

The United States Department of Health and Human Services has childcare grant funding for low-income parents. You can apply for the grants at your local U.S. Department of Health and Human Services.

If you are a student, you can check with your college for child care grants. These grants help students earn a college degree to improve their chances of landing a higher paying career upon graduation. In Minnesota, single parents who have a low income can apply for the Postsecondary Child Care Grant Program.

You can also check with child care centers in your community, as some receive grant funding to help care for children from low-income households.

Your employer may also be able to assist you in child care costs. Many companies provide this benefit to their employees so they are able to keep good employees.

Continue Searching and Applying for Success

Being a single parent isn’t easy but it’s not impossible. Continue to keep your eyes out for grants that can help you lower the cost of child care.

The more grants you apply to the higher of chance you’ll have of being awarded one.

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